Public Markets 8 Hours

Last updated: June 8, 2026, 2:32 AM ET

Global Markets Under Pressure as AI Selloff Escalates

Global markets faced significant selling pressure over the past eight hours as a tech rout intensified, with AI-related stocks bearing the brunt of the decline. The Nasdaq plunged 2.8% as investors unwound artificial intelligence bets, while South Korean stocks tumbled 3.5%, imperiling the world's biggest stock rally. The selloff spread to Japanese markets, where tech shares led declines after strong US jobs data fueled expectations that the Federal Reserve will keep rates higher for longer. Despite the downturn, Nvidia CEO Jensen Huang called the tech stock selloff a buying opportunity, emphasizing that the AI buildout has just begun. Meanwhile, software buyout deals collapsed to pandemic lows, with private equity software acquisitions totaling just $50 billion in the first five months of the year.

Geopolitical Tensions Spark Risk-Off Trading

Escalating tensions in the Middle East triggered a flight to safety across financial markets. Iran and Israel exchanged missile attacks despite President Trump's calls for de-escalation, with Israel launching a counterassault that renewed fears of wider conflict. The violence sent oil prices surging 4.2% to $87.65 per barrel amid concerns about potential supply disruptions, while gold held near $2,350 as investors sought safe havens. Treasuries fell sharply as investors increased bets on Federal Reserve rate hikes, with the 10-year yield rising 8 basis points to 4.72%. The risk-off sentiment also pressured Asian currencies, which traded mixed against the dollar as traders grappled with growing Fed rate-hike expectations.

Energy Markets React to Supply Concerns

Energy markets remained volatile amid shifting supply dynamics. China's imports of liquefied natural gas surged 15% as the nation stepped up purchases to cope with rising electricity consumption during hotter summer months. Meanwhile, Saudi Arabia cut July oil prices to Asia for a second consecutive month, though premiums for barrels to the kingdom's largest market remained near the highest in decades. In an unusual move, Total Energies capped pump prices in France to avert mass protests, as surging profits made the company a target for a windfall tax. Asian coal prices rose to 22-month highs as Indonesia's new export rules delayed shipments, tightening supplies just as demand for power-plant fuel increases with the summer season.

European Banking Mergers and Emerging Market Pressures

European banking consolidation intensified as Italy's largest bank launched a €30.6 billion bid for Monte dei Paschi, rivaling Banco BPM's earlier merger proposal. Intesa Sanpaolo's offer promised significant cost savings, potentially creating Italy's third-largest banking group. In emerging markets, Indonesia's rupiah plummeted to record lows, prompting authorities to unveil measures to